x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
VIRGINIA | 20-0812170 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
330 SOUTH FOURTH STREET RICHMOND, VIRGINIA | 23219-4350 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
Page Number | |
(in thousands, except per-share amounts) | Second Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net sales | $ | 547,188 | $ | 521,807 | $ | 1,090,006 | $ | 1,031,734 | ||||||||
Cost of goods sold | 382,312 | 343,407 | 754,885 | 677,784 | ||||||||||||
Gross profit | 164,876 | 178,400 | 335,121 | 353,950 | ||||||||||||
Selling, general, and administrative expenses | 38,816 | 40,388 | 78,745 | 81,328 | ||||||||||||
Research, development, and testing expenses | 35,581 | 40,720 | 72,286 | 79,936 | ||||||||||||
Operating profit | 90,479 | 97,292 | 184,090 | 192,686 | ||||||||||||
Interest and financing expenses, net | 5,360 | 3,954 | 10,932 | 8,142 | ||||||||||||
Other income (expense), net | 171 | (1,266 | ) | 365 | (3,526 | ) | ||||||||||
Income before income tax expense | 85,290 | 92,072 | 173,523 | 181,018 | ||||||||||||
Income tax expense | 22,562 | 27,683 | 46,858 | 54,698 | ||||||||||||
Net income | $ | 62,728 | $ | 64,389 | $ | 126,665 | $ | 126,320 | ||||||||
Earnings per share - basic and diluted | $ | 5.29 | $ | 5.43 | $ | 10.69 | $ | 10.65 | ||||||||
Cash dividends declared per share | $ | 1.75 | $ | 1.60 | $ | 3.50 | $ | 3.20 |
(in thousands) | Second Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 62,728 | $ | 64,389 | $ | 126,665 | $ | 126,320 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Pension plans and other postretirement benefits: | ||||||||||||||||
Amortization of prior service cost (credit) included in net periodic benefit cost, net of income tax expense (benefit) of $(296) in second quarter 2017, $(305) in second quarter 2016, $(592) in six months 2017 and $(610) in six months 2016 | (474 | ) | (490 | ) | (948 | ) | (979 | ) | ||||||||
Amortization of actuarial net loss (gain) included in net periodic benefit cost, net of income tax expense (benefit) of $567 in second quarter 2017, $571 in second quarter 2016, $1,076 in six months 2017 and $1,141 in six months 2016 | 1,064 | 999 | 1,847 | 1,990 | ||||||||||||
Total pension plans and other postretirement benefits | 590 | 509 | 899 | 1,011 | ||||||||||||
Foreign currency translation adjustments, net of income tax expense (benefit) of $(360) in second quarter 2017, $(65) in second quarter 2016, $(80) in six months 2017 and $1,600 in six months 2016 | 9,372 | (5,560 | ) | 13,014 | (10,323 | ) | ||||||||||
Other comprehensive income (loss) | 9,962 | (5,051 | ) | 13,913 | (9,312 | ) | ||||||||||
Comprehensive income | $ | 72,690 | $ | 59,338 | $ | 140,578 | $ | 117,008 |
(in thousands, except share amounts) | June 30, 2017 | December 31, 2016 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 278,035 | $ | 192,154 | ||||
Trade and other accounts receivable, less allowance for doubtful accounts | 332,372 | 306,916 | ||||||
Inventories: | ||||||||
Finished goods and work-in-process | 296,593 | 254,068 | ||||||
Raw materials | 49,336 | 45,581 | ||||||
Stores, supplies, and other | 10,223 | 11,863 | ||||||
Total inventories | 356,152 | 311,512 | ||||||
Prepaid expenses and other current assets | 28,756 | 26,301 | ||||||
Total current assets | 995,315 | 836,883 | ||||||
Property, plant, and equipment, at cost | 1,352,487 | 1,264,957 | ||||||
Less accumulated depreciation and amortization | 791,348 | 761,212 | ||||||
Net property, plant, and equipment | 561,139 | 503,745 | ||||||
Prepaid pension cost | 36,994 | 25,800 | ||||||
Deferred income taxes | 23,284 | 29,063 | ||||||
Intangibles (net of amortization) and goodwill | 10,217 | 10,436 | ||||||
Deferred charges and other assets | 9,834 | 10,509 | ||||||
Total assets | $ | 1,636,783 | $ | 1,416,436 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 157,531 | $ | 141,869 | ||||
Accrued expenses | 88,719 | 104,082 | ||||||
Dividends payable | 19,125 | 17,478 | ||||||
Income taxes payable | 12,969 | 17,573 | ||||||
Other current liabilities | 12,138 | 13,588 | ||||||
Total current liabilities | 290,482 | 294,590 | ||||||
Long-term debt | 627,976 | 507,275 | ||||||
Other noncurrent liabilities | 134,620 | 131,320 | ||||||
Total liabilities | 1,053,078 | 933,185 | ||||||
Commitments and contingencies (Note 7) | ||||||||
Shareholders’ equity: | ||||||||
Common stock and paid-in capital (without par value; authorized shares - 80,000,000; issued and outstanding shares - 11,852,512 at June 30, 2017 and 11,845,972 at December 31, 2016) | 2,961 | 1,603 | ||||||
Accumulated other comprehensive loss | (168,597 | ) | (182,510 | ) | ||||
Retained earnings | 749,341 | 664,158 | ||||||
Total shareholders' equity | 583,705 | 483,251 | ||||||
Total liabilities and shareholders’ equity | $ | 1,636,783 | $ | 1,416,436 |
(in thousands, except share and per-share amounts) | Common Stock and Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Shareholders’ Equity | |||||||||||||||
Shares | Amount | ||||||||||||||||||
Balance at December 31, 2015 | 11,948,446 | $ | 0 | $ | (144,526 | ) | $ | 532,090 | $ | 387,564 | |||||||||
Net income | 126,320 | 126,320 | |||||||||||||||||
Other comprehensive income (loss) | (9,312 | ) | (9,312 | ) | |||||||||||||||
Cash dividends ($3.20 per share) | (37,917 | ) | (37,917 | ) | |||||||||||||||
Repurchases of common stock | (98,867 | ) | (252 | ) | (35,563 | ) | (35,815 | ) | |||||||||||
Stock-based compensation | (1,195 | ) | 1,361 | 13 | 1,374 | ||||||||||||||
Balance at June 30, 2016 | 11,848,384 | $ | 1,109 | $ | (153,838 | ) | $ | 584,943 | $ | 432,214 | |||||||||
Balance at December 31, 2016 | 11,845,972 | $ | 1,603 | $ | (182,510 | ) | $ | 664,158 | $ | 483,251 | |||||||||
Net income | 126,665 | 126,665 | |||||||||||||||||
Other comprehensive income (loss) | 13,913 | 13,913 | |||||||||||||||||
Cash dividends ($3.50 per share) | (41,484 | ) | (41,484 | ) | |||||||||||||||
Stock-based compensation | 6,540 | 1,358 | 2 | 1,360 | |||||||||||||||
Balance at June 30, 2017 | 11,852,512 | $ | 2,961 | $ | (168,597 | ) | $ | 749,341 | $ | 583,705 |
(in thousands) | Six Months Ended June 30, | |||||||
2017 | 2016 | |||||||
Cash and cash equivalents at beginning of year | $ | 192,154 | $ | 93,424 | ||||
Cash flows from operating activities: | ||||||||
Net income | 126,665 | 126,320 | ||||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||||
Depreciation and amortization | 24,623 | 21,082 | ||||||
Noncash pension and postretirement expense | 4,055 | 6,111 | ||||||
Deferred income tax expense | 8,116 | 4,596 | ||||||
Unrealized loss on derivative instruments, net | 0 | 3,051 | ||||||
Working capital changes | (51,376 | ) | 29,965 | |||||
Cash pension and postretirement contributions | (12,936 | ) | (13,058 | ) | ||||
Realized loss on derivative instruments, net | 0 | 2,330 | ||||||
Other, net | (6,530 | ) | 7,584 | |||||
Cash provided from (used in) operating activities | 92,617 | 187,981 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (85,211 | ) | (64,289 | ) | ||||
Deposits for interest rate swap | 0 | (7,211 | ) | |||||
Return of deposits for interest rate swap | 0 | 3,760 | ||||||
Other, net | (2,000 | ) | (2,330 | ) | ||||
Cash provided from (used in) investing activities | (87,211 | ) | (70,070 | ) | ||||
Cash flows from financing activities: | ||||||||
Net (repayments) borrowings under revolving credit facility | (129,574 | ) | 25,000 | |||||
Issuance of 3.78% senior notes | 250,000 | 0 | ||||||
Dividends paid | (41,484 | ) | (37,917 | ) | ||||
Repurchases of common stock | 0 | (35,815 | ) | |||||
Other, net | (1,456 | ) | (3,073 | ) | ||||
Cash provided from (used in) financing activities | 77,486 | (51,805 | ) | |||||
Effect of foreign exchange on cash and cash equivalents | 2,989 | (1,394 | ) | |||||
Increase in cash and cash equivalents | 85,881 | 64,712 | ||||||
Cash and cash equivalents at end of period | $ | 278,035 | $ | 158,136 | ||||
Supplemental disclosure of non-cash transactions: | ||||||||
Non-cash additions to property, plant, and equipment | $ | 8,579 | $ | 16,002 | ||||
Non-cash obligation under capital lease | $ | 0 | $ | 5,068 |
Second Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Petroleum additives | ||||||||||||||||
Lubricant additives | $ | 453,377 | $ | 432,183 | $ | 897,338 | $ | 851,035 | ||||||||
Fuel additives | 90,776 | 83,929 | 186,848 | 171,220 | ||||||||||||
Total | 544,153 | 516,112 | 1,084,186 | 1,022,255 | ||||||||||||
All other | 3,035 | 5,695 | 5,820 | 9,479 | ||||||||||||
Net sales | $ | 547,188 | $ | 521,807 | $ | 1,090,006 | $ | 1,031,734 |
Second Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Petroleum additives | $ | 94,932 | $ | 102,531 | $ | 194,002 | $ | 202,920 | ||||||||
All other | 860 | 1,355 | 1,940 | 1,591 | ||||||||||||
Segment operating profit | 95,792 | 103,886 | 195,942 | 204,511 | ||||||||||||
Corporate, general, and administrative expenses | (5,003 | ) | (6,136 | ) | (11,672 | ) | (11,406 | ) | ||||||||
Interest and financing expenses, net | (5,360 | ) | (3,954 | ) | (10,932 | ) | (8,142 | ) | ||||||||
Other income (expense), net | (139 | ) | (1,724 | ) | 185 | (3,945 | ) | |||||||||
Income before income tax expense | $ | 85,290 | $ | 92,072 | $ | 173,523 | $ | 181,018 |
(in thousands) | Actual Cash Contributions for Six Months Ended June 30, 2017 | Expected Remaining Cash Contributions for Year Ending December 31, 2017 | ||||||
Domestic plans | ||||||||
Pension benefits | $ | 9,651 | $ | 9,651 | ||||
Postretirement benefits | 643 | 643 | ||||||
Foreign plans | ||||||||
Pension benefits | 2,642 | 2,672 |
Domestic | ||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Second Quarter Ended June 30, | ||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 3,379 | $ | 3,107 | $ | 187 | $ | 160 | ||||||||
Interest cost | 3,358 | 3,268 | 392 | 421 | ||||||||||||
Expected return on plan assets | (6,502 | ) | (5,753 | ) | (308 | ) | (319 | ) | ||||||||
Amortization of prior service cost (credit) | 6 | (16 | ) | (757 | ) | (757 | ) | |||||||||
Amortization of actuarial net (gain) loss | 1,230 | 1,304 | 0 | 0 | ||||||||||||
Net periodic benefit cost (income) | $ | 1,471 | $ | 1,910 | $ | (486 | ) | $ | (495 | ) | ||||||
Domestic | ||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 6,758 | $ | 6,214 | $ | 373 | $ | 321 | ||||||||
Interest cost | 6,718 | 6,534 | 786 | 841 | ||||||||||||
Expected return on plan assets | (13,005 | ) | (11,506 | ) | (617 | ) | (637 | ) | ||||||||
Amortization of prior service cost (credit) | 13 | (32 | ) | (1,514 | ) | (1,514 | ) | |||||||||
Amortization of actuarial net (gain) loss | 2,459 | 2,607 | 0 | 0 | ||||||||||||
Net periodic benefit cost (income) | $ | 2,943 | $ | 3,817 | $ | (972 | ) | $ | (989 | ) |
Foreign | ||||||||||||||||
Pension Benefits | ||||||||||||||||
Second Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 1,882 | $ | 1,877 | $ | 3,703 | $ | 3,720 | ||||||||
Interest cost | 1,047 | 1,294 | 2,065 | 2,568 | ||||||||||||
Expected return on plan assets | (2,078 | ) | (1,760 | ) | (4,102 | ) | (3,491 | ) | ||||||||
Amortization of prior service cost (credit) | (19 | ) | (22 | ) | (38 | ) | (44 | ) | ||||||||
Amortization of actuarial net (gain) loss | 231 | 268 | 456 | 530 | ||||||||||||
Net periodic benefit cost (income) | $ | 1,063 | $ | 1,657 | $ | 2,084 | $ | 3,283 |
Second Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands, except per-share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Earnings per share numerator: | ||||||||||||||||
Net income attributable to common shareholders before allocation of earnings to participating securities | $ | 62,728 | $ | 64,389 | $ | 126,665 | $ | 126,320 | ||||||||
Earnings allocated to participating securities | 125 | 134 | 252 | 265 | ||||||||||||
Net income attributable to common shareholders after allocation of earnings to participating securities | $ | 62,603 | $ | 64,255 | $ | 126,413 | $ | 126,055 | ||||||||
Earnings per share denominator: | ||||||||||||||||
Weighted-average number of shares of common stock outstanding - basic and diluted | 11,829 | 11,823 | 11,829 | 11,831 | ||||||||||||
Earnings per share - basic and diluted | $ | 5.29 | $ | 5.43 | $ | 10.69 | $ | 10.65 |
June 30, 2017 | December 31, 2016 | |||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Amortizing intangible assets | ||||||||||||||||
Formulas and technology | $ | 2,719 | $ | 2,074 | $ | 2,678 | $ | 1,958 | ||||||||
Contracts | 2,000 | 100 | 2,000 | 0 | ||||||||||||
Customer bases | 6,953 | 4,110 | 6,938 | 3,961 | ||||||||||||
Trademarks and trade names | 1,525 | 1,140 | 1,513 | 1,069 | ||||||||||||
Goodwill | 4,444 | 4,295 | ||||||||||||||
$ | 17,641 | $ | 7,424 | $ | 17,424 | $ | 6,988 |
Second quarter ended June 30, 2017 | $ | 218 | |
Six months ended June 30, 2017 | 436 | ||
Second quarter ended June 30, 2016 | 301 | ||
Six months ended June 30, 2016 | 1,354 |
2017 | $ | 428 | |
2018 | 834 | ||
2019 | 813 | ||
2020 | 504 | ||
2021 | 440 | ||
2022 | 440 |
(in thousands) | June 30, 2017 | December 31, 2016 | ||||||
Senior notes - 4.10% due 2022 (net of related deferred financing costs) | $ | 346,798 | $ | 346,505 | ||||
Senior notes - 3.78% due 2029 | 250,000 | 0 | ||||||
Revolving credit facility | 26,426 | 156,000 | ||||||
Capital lease obligation | 4,752 | 4,770 | ||||||
$ | 627,976 | $ | 507,275 |
(in thousands) | June 30, 2017 | December 31, 2016 | ||||||
Maximum borrowing capacity under the revolving credit facility | $ | 650,000 | $ | 650,000 | ||||
Outstanding borrowings under the revolving credit facility | 26,426 | 156,000 | ||||||
Outstanding letters of credit | 3,535 | 3,483 | ||||||
Unused portion of revolving credit facility | $ | 620,039 | $ | 490,517 |
(in thousands) | Pension Plans and Other Postretirement Benefits | Foreign Currency Translation Adjustments | Accumulated Other Comprehensive (Loss) Income | |||||||||
Balance at December 31, 2015 | $ | (69,798 | ) | $ | (74,728 | ) | $ | (144,526 | ) | |||
Other comprehensive income (loss) before reclassifications | 0 | (10,323 | ) | (10,323 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss (a) | 1,011 | 0 | 1,011 | |||||||||
Other comprehensive income (loss) | 1,011 | (10,323 | ) | (9,312 | ) | |||||||
Balance at June 30, 2016 | $ | (68,787 | ) | $ | (85,051 | ) | $ | (153,838 | ) | |||
Balance at December 31, 2016 | $ | (76,187 | ) | $ | (106,323 | ) | $ | (182,510 | ) | |||
Other comprehensive income (loss) before reclassifications | 0 | 13,014 | 13,014 | |||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | 899 | 0 | 899 | |||||||||
Other comprehensive income (loss) | 899 | 13,014 | 13,913 | |||||||||
Balance at June 30, 2017 | $ | (75,288 | ) | $ | (93,309 | ) | $ | (168,597 | ) |
June 30, 2017 | December 31, 2016 | |||||||||||||||
(in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt (excluding capital lease obligation) | $ | 623,224 | $ | 640,815 | $ | 502,505 | $ | 507,925 |
Second Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Petroleum additives | ||||||||||||||||
Lubricant additives | $ | 453.4 | $ | 432.2 | $ | 897.3 | $ | 851.0 | ||||||||
Fuel additives | 90.8 | 83.9 | 186.9 | 171.2 | ||||||||||||
Total | 544.2 | 516.1 | 1,084.2 | 1,022.2 | ||||||||||||
All other | 3.0 | 5.7 | 5.8 | 9.5 | ||||||||||||
Net sales | $ | 547.2 | $ | 521.8 | $ | 1,090.0 | $ | 1,031.7 |
(in millions) | Second Quarter | Six Months | ||||||
Period ended June 30, 2016 | $ | 516.1 | $ | 1,022.2 | ||||
Lubricant additives shipments | 35.9 | 84.3 | ||||||
Fuel additives shipments | 5.0 | 14.7 | ||||||
Selling prices | (8.2 | ) | (28.7 | ) | ||||
Foreign currency impact, net | (4.6 | ) | (8.3 | ) | ||||
Period ended June 30, 2017 | $ | 544.2 | $ | 1,084.2 |
Second Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Petroleum additives | $ | 94.9 | $ | 102.5 | $ | 194.0 | $ | 202.9 | ||||||||
All other | $ | 0.9 | $ | 1.4 | $ | 1.9 | $ | 1.6 |
First Amendment to Share Sale Agreement, dated as of June 30, 2017, by and among Afton Chemical de Mexico, S.A. de C.V., Chevron Oronite Company LLC, the individual Local Sellers referred to therein, the Local Sellers' Representative referred to therein, Aditivos Mexicanos, S.A. de C.V., NewMarket Corporation, as Buyer Guarantor, and Afton Chemical Corporation (incorporated by reference to Exhibit 2.1 to Form 8-K (File No. 1-32190) filed July 3, 2017) | |
Articles of Incorporation Amended and Restated effective April 27, 2012 (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 1-32190) filed April 30, 2012) | |
NewMarket Corporation Bylaws Amended and Restated effective August 6, 2015 (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 1- 32190) filed August 6, 2015) | |
Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Thomas E. Gottwald | |
Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Brian D. Paliotti | |
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Thomas E. Gottwald | |
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Brian D. Paliotti | |
Exhibit 101 | XBRL Instance Document and Related Items |
NEWMARKET CORPORATION | |
(Registrant) | |
Date: August 3, 2017 | By: /s/ Brian D. Paliotti |
Brian D. Paliotti | |
Vice President and | |
Chief Financial Officer | |
(Principal Financial Officer) | |
Date: August 3, 2017 | By: /s/ William J. Skrobacz |
William J. Skrobacz | |
Controller | |
(Principal Accounting Officer) |
Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Thomas E. Gottwald | |
Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Brian D. Paliotti | |
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Thomas E. Gottwald | |
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Brian D. Paliotti | |
Exhibit 101 | XBRL Instance Document and Related Items |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 of NewMarket Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 3, 2017 | ||
By: | /s/ Thomas E. Gottwald | |
Thomas E. Gottwald | ||
Chairman of the Board, President, and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 of NewMarket Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 3, 2017 | ||
By: | /s/ Brian D. Paliotti | |
Brian D. Paliotti | ||
Vice President and Chief Financial Officer |
By: | /s/ Thomas E. Gottwald |
Thomas E. Gottwald | |
Chairman of the Board, President, and Chief Executive Officer | |
August 3, 2017 |
By: | /s/ Brian D. Paliotti |
Brian D. Paliotti | |
Vice President and Chief Financial Officer | |
August 3, 2017 |
Document And Entity Information - shares |
6 Months Ended | |
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Jun. 30, 2017 |
Jul. 31, 2017 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | NEWMARKET CORP | |
Entity Central Index Key | 0001282637 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,853,162 |
Consolidated Statements Of Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Statement [Abstract] | ||||
Net sales | $ 547,188 | $ 521,807 | $ 1,090,006 | $ 1,031,734 |
Cost of goods sold | 382,312 | 343,407 | 754,885 | 677,784 |
Gross profit | 164,876 | 178,400 | 335,121 | 353,950 |
Selling, general, and administrative expenses | 38,816 | 40,388 | 78,745 | 81,328 |
Research, development, and testing expenses | 35,581 | 40,720 | 72,286 | 79,936 |
Operating profit | 90,479 | 97,292 | 184,090 | 192,686 |
Interest and financing expenses, net | 5,360 | 3,954 | 10,932 | 8,142 |
Other income (expense), net | 171 | (1,266) | 365 | (3,526) |
Income before income tax expense | 85,290 | 92,072 | 173,523 | 181,018 |
Income tax expense | 22,562 | 27,683 | 46,858 | 54,698 |
Net income | $ 62,728 | $ 64,389 | $ 126,665 | $ 126,320 |
Earnings per share - basic and diluted (in dollars per share) | $ 5.29 | $ 5.43 | $ 10.69 | $ 10.65 |
Cash dividends declared per share (in dollars per share) | $ 1.75 | $ 1.60 | $ 3.50 | $ 3.20 |
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Amortization of prior service cost (credit) included in net periodic benefit cost, income tax expense (benefit) | $ (296) | $ (305) | $ (592) | $ (610) |
Amortization of actuarial net loss (gain) included in net periodic benefit cost, income tax expense (benefit) | 567 | 571 | 1,076 | 1,141 |
Foreign currency translation adjustments, income tax expense (benefit) | $ (360) | $ (65) | $ (80) | $ 1,600 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2017 |
Dec. 31, 2016 |
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Statement of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, authorized shares | 80,000,000 | 80,000,000 |
Common stock, issued shares | 11,852,512 | 11,845,972 |
Common stock, outstanding shares | 11,852,512 | 11,845,972 |
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (in dollars per share) | $ 1.75 | $ 1.60 | $ 3.50 | $ 3.20 |
Condensed Consolidated Statements of Cash Flows (Parenthetical) |
Jun. 30, 2017 |
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3.78% Senior Notes [Member] | |
Senior notes, interest rate | 3.78% |
Financial Statement Presentation |
6 Months Ended |
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Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation In the opinion of management, the accompanying consolidated financial statements of NewMarket Corporation and its subsidiaries contain all necessary adjustments for the fair statement of, in all material respects, our consolidated financial position as of June 30, 2017 and December 31, 2016, our consolidated results of operations and comprehensive income for the second quarter and six months ended June 30, 2017 and June 30, 2016, and our changes in shareholders' equity, and cash flows for the six months ended June 30, 2017 and June 30, 2016. All adjustments are of a normal, recurring nature, unless otherwise disclosed. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the NewMarket Corporation Annual Report on Form 10-K for the year ended December 31, 2016 (2016 Annual Report), as filed with the Securities and Exchange Commission (SEC). The results of operations for the six month period ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017. The December 31, 2016 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Unless the context otherwise indicates, all references to “we,” “us,” “our,” the “company,” and “NewMarket” are to NewMarket Corporation and its consolidated subsidiaries. Certain reclassifications have been made to the accompanying consolidated financial statements to conform to the current presentation. |
Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The tables below show our consolidated segment results. The “All other” category includes the operations of the tetraethyl lead (TEL) business, as well as certain contracted manufacturing and services associated with Ethyl Corporation (Ethyl). Net Sales by Segment
Segment Operating Profit
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Pension Plans and Other Postretirement Benefits |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits The table below shows cash contributions made during the six months ended June 30, 2017, as well as the remaining cash contributions we expect to make during the year ending December 31, 2017, for our domestic and foreign pension plans and domestic postretirement benefit plan.
The tables below present information on net periodic benefit cost (income) for our domestic and foreign pension plans and domestic postretirement benefit plan.
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Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share We had 23,670 shares of nonvested restricted stock at June 30, 2017 and 25,255 shares of nonvested restricted stock at June 30, 2016 that were excluded from the calculation of diluted earnings per share, as their effect on earnings per share would be anti-dilutive. The nonvested restricted stock is considered a participating security since the restricted stock contains nonforfeitable rights to dividends. As such, we use the two-class method to compute basic and diluted earnings per share for all periods presented since this method yielded a more dilutive result than the treasury-stock method. The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share.
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Intangibles (Net of Amortization) and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles (Net of Amortization) and Goodwill | Intangibles (Net of Amortization) and Goodwill The net carrying amount of intangibles and goodwill was $10 million at June 30, 2017 and December 31, 2016. The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below.
All of the intangibles relate to the petroleum additives segment. The change in the gross carrying amount between December 31, 2016 and June 30, 2017 is due to foreign currency fluctuations. There is no accumulated goodwill impairment. Amortization expense was (in thousands):
Estimated amortization expense for the remainder of 2017, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands):
We amortize contracts over 10 years; customer bases over 20 years; formulas and technology over 10 years; and trademarks and trade names over 10 years. |
Long-term Debt |
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Long-term Debt | Long-term Debt
The outstanding 4.10% senior notes have an aggregate principal amount of $350 million and are registered under the Securities Act of 1933, as amended (Securities Act). On January 4, 2017, we issued $250 million in senior unsecured notes in a private placement with The Prudential Insurance Company of America and certain other purchasers. These notes bear interest at 3.78% and mature on January 4, 2029. Interest is payable semiannually and principal payments of $50 million are payable annually beginning on January 4, 2025. We have the right to make optional prepayments on the notes at any time, subject to certain limitations. The note purchase agreement contains representations, warranties, terms and conditions customary for transactions of this type. These include negative covenants, certain financial covenants, and events of default which are substantially similar to the covenants and events of default in our revolving credit facility. The proceeds from the 3.78% senior notes were used in part to pay off the outstanding amount on our revolving credit facility. The capital lease obligation in the table above is related to the Singapore manufacturing facility. The following table provides information related to the unused portion of our revolving credit facility:
The average interest rate for borrowings under our revolving credit facility was 2.0% during the first six months of 2017 and 1.9% during the full year of 2016. We were in compliance with all covenants under our debt agreements at June 30, 2017 and at December 31, 2016, as applicable. |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters We are involved in legal proceedings that are incidental to our business and may include administrative or judicial actions. Some of these legal proceedings involve governmental authorities and relate to environmental matters. For further information, see Environmental below. While it is not possible to predict or determine with certainty the outcome of any legal proceeding, we believe the outcome of any of these proceedings, or all of them combined, will not result in a material adverse effect on our consolidated results of operations, financial condition, or cash flows. In late 2013, Afton Chemical Corporation (Afton) initiated a voluntary self-audit of its compliance with certain sections of the Toxic Substances Control Act (TSCA) under the Environmental Protection Agency's (EPA) audit policy (Audit Policy). If any potential TSCA violations are discovered during the audit, we would voluntarily disclose them to the EPA under the Audit Policy. In August 2014, the EPA staff began its own TSCA inspection of both Afton and Ethyl. While it is not possible to predict or determine with certainty the outcome, we do not believe that any findings identified as a result of our audit or the EPA’s TSCA inspection will have a material adverse effect on our consolidated results of operations, financial condition, or cash flows. Environmental We are involved in environmental proceedings and potential proceedings relating to soil and groundwater contamination, disposal of hazardous waste, and other environmental matters at several of our current or former facilities, or at third-party sites where we have been designated as a potentially responsible party (PRP). While we believe we are currently adequately accrued for known environmental issues, it is possible that unexpected future costs could have a significant impact on our financial position, results of operations, and cash flows. Our total accruals for environmental remediation, dismantling, and decontamination were approximately $15 million at June 30, 2017 and $16 million at December 31, 2016. Of the total accrual, the current portion is included in accrued expenses and the noncurrent portion is included in other noncurrent liabilities on the Condensed Consolidated Balance Sheets. Our more significant environmental sites include a former TEL plant site in Louisiana (the Louisiana site) and a Houston, Texas plant site (the Texas site). Together, the amounts accrued on a discounted basis related to these sites represented approximately $9 million of the total accrual above at June 30, 2017 and $10 million of the total accrual above at December 31, 2016, using discount rates ranging from 4% to 9% for both periods. The aggregate undiscounted amount for these sites was $12 million at June 30, 2017 and $13 million at December 31, 2016. Of the total accrued for these two sites, the amount related to remediation of groundwater and soil for the Louisiana site was $4 million at both June 30, 2017 and December 31, 2016. The amount related to remediation of groundwater and soil for the Texas site was $5 million at both June 30, 2017 and December 31, 2016. In 2000, the EPA named us as a PRP under Superfund law for the clean-up of soil and groundwater contamination at the five grouped disposal sites known as "Sauget Area 2 Sites" in Sauget, Illinois. Without admitting any fact, responsibility, fault, or liability in connection with this site, we are participating with other PRPs in site investigations and feasibility studies. In December 2013, the EPA issued its Record of Decision confirming its remedies for the selected Sauget Area 2 Sites. We have accrued our estimated proportional share of the remedial costs and expenses addressed in the Record of Decision. We do not believe there is any additional information available as a basis for revision of the liability that we have established at June 30, 2017. The amount accrued for this site is not material. |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss | Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss The balances of, and changes in, the components of accumulated other comprehensive loss, net of tax, consist of the following:
(a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 3 in this Form 10-Q and Note 17 in our 2016 Annual Report for further information. |
Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements The carrying amount in the Condensed Consolidated Balance Sheets and the fair value of cash and cash equivalents were $278 million at June 30, 2017 and $192 million at December 31, 2016. The fair value is categorized in Level 1 of the fair value hierarchy. No material events occurred during the six months ended June 30, 2017 requiring adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis. Long-term debt – We record the carrying amount of our long-term debt related to the 4.10% senior notes at historical cost, less deferred financing costs. We record the carrying amount of our long-term debt related to the 3.78% senior notes at historical cost. The estimated fair value of our long-term debt is shown in the table below and is based primarily on estimated current rates available to us for debt of the same remaining duration and adjusted for nonperformance risk and credit risk. The estimated fair value of our publicly-traded 4.10% senior notes included in long-term debt in the table below is also based on the last quoted price closest to June 30, 2017. The fair value of our debt instruments are categorized as Level 2.
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Recent Accounting Pronouncements |
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Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09). ASU 2014-09 replaces the previous guidance and clarifies the principles for revenue recognition. It requires a five-step process for revenue recognition that represents the transfer of goods or services to customers in an amount that reflects the consideration expected to be received by a company. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows from contracts with customers. ASU 2014-09 is effective for our reporting period beginning January 1, 2018. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We currently anticipate adopting the standard as a cumulative-effect adjustment. We expect to continue the evaluation, analysis, and documentation of our adoption of ASU 2014-09 (including those subsequently issued updates that clarify the provisions), throughout most of this year as we work towards implementation and finalize the impact the adoption will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" (ASU 2016-02). The FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring disclosures related to certain information about leasing arrangements. Under the new guidance, operating leases are, in most cases, required to be recognized on the balance sheet as a lease asset and liability. A modified retrospective approach is required for the adoption of ASU 2016-02, which is effective for our reporting period beginning January 1, 2019. Early adoption is permitted. We are currently assessing the impact that the adoption of ASU 2016-02 will have on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" (ASU 2017-07), which requires that an employer report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement outside of operating profit. ASU 2017-07 also allows only the service cost component to be eligible for capitalization in assets. There will be no change to net income as a result of ASU 2017-07, which is effective for our reporting period beginning January 1, 2018. Retrospective application is required for the income statement presentation and prospective application is required for the capitalization of the service cost component in assets. The adoption of ASU 2017-07 will result in a change within operating profit with a corresponding change in other income (expense), net to reflect the impact of presenting all components of net benefit cost, except for service cost, outside of operating income. See Note 3 for the components of our net benefit costs. We do not expect a material impact to our consolidated balance sheets or consolidated statements of cash flows. |
Subsequent Events |
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Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 11. Subsequent Events On July 3, 2017, Afton Chemical de Mexico, S.A. de C.V., an indirect, wholly-owned subsidiary of NewMarket Corporation, acquired approximately 99.5% of the outstanding capital stock of Aditivos Mexicanos, S.A. de C.V. (AMSA), a petroleum additives manufacturing, sales and distribution company based in Mexico City, Mexico. We are performing a valuation of the acquired business, as well as finalizing the working capital statement and related final purchase price. We expect both to be completed during the third quarter of 2017, and we do not expect the purchase price to be significantly different from the $185 million cash paid. |
Significant Accounting Policies (Policies) |
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Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Long-Term Debt | We record the carrying amount of our long-term debt related to the 4.10% senior notes at historical cost, less deferred financing costs. We record the carrying amount of our long-term debt related to the 3.78% senior notes at historical cost. |
Segment Information (Tables) |
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Net Sales by Segment | Net Sales by Segment
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Segment Operating Profit | Segment Operating Profit
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Pension Plans and Other Postretirement Benefits (Tables) |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Contributions Made And Expected Remaining Contributions For Pension And Postretirement Benefit Plans | The table below shows cash contributions made during the six months ended June 30, 2017, as well as the remaining cash contributions we expect to make during the year ending December 31, 2017, for our domestic and foreign pension plans and domestic postretirement benefit plan.
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Net Periodic Benefit Cost (Income) For Pension And Postretirement Benefit Plans | The tables below present information on net periodic benefit cost (income) for our domestic and foreign pension plans and domestic postretirement benefit plan.
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share.
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Intangibles (Net of Amortization) and Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information Related to Intangible Assets and Goodwill | The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below.
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Schedule Of Amortization Expense | Amortization expense was (in thousands):
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Schedule Of Estimated Annual Amortization Expense Related To Intangible Assets | Estimated amortization expense for the remainder of 2017, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands):
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Long-term Debt (Tables) |
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Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Long-Term Debt |
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Schedule Of Unused Portion Of Revolving Credit Facility | The following table provides information related to the unused portion of our revolving credit facility:
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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Loss, Net of Tax | The balances of, and changes in, the components of accumulated other comprehensive loss, net of tax, consist of the following:
(a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 3 in this Form 10-Q and Note 17 in our 2016 Annual Report for further information. |
Fair Value Measurements (Tables) |
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value Of Long-Term Debt |
|
Segment Information (Net Sales By Segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Information [Line Items] | ||||
Net sales | $ 547,188 | $ 521,807 | $ 1,090,006 | $ 1,031,734 |
Operating Segments [Member] | Petroleum Additives [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | 544,153 | 516,112 | 1,084,186 | 1,022,255 |
Operating Segments [Member] | All Other [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | 3,035 | 5,695 | 5,820 | 9,479 |
Operating Segments [Member] | Lubricant Additives [Member] | Petroleum Additives [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | 453,377 | 432,183 | 897,338 | 851,035 |
Operating Segments [Member] | Fuel Additives [Member] | Petroleum Additives [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | $ 90,776 | $ 83,929 | $ 186,848 | $ 171,220 |
Pension Plans and Other Postretirement Benefits (Cash Contributions Made And Expected Remaining Contributions For Pension And Postretirement Benefit Plans) (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Pension Plan [Member] | Domestic Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | $ 9,651 |
Expected Remaining Cash Contributions | 9,651 |
Pension Plan [Member] | Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | 2,642 |
Expected Remaining Cash Contributions | 2,672 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | 643 |
Expected Remaining Cash Contributions | $ 643 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares of nonvested restricted stock that were excluded from the calculation of diluted earnings per share (in shares) | 23,670 | 25,255 | ||
Earnings per share numerator: | ||||
Net income attributable to common shareholders before allocation of earnings to participating securities | $ 62,728 | $ 64,389 | $ 126,665 | $ 126,320 |
Earnings allocated to participating securities | 125 | 134 | 252 | 265 |
Net income attributable to common shareholders after allocation of earnings to participating securities | $ 62,603 | $ 64,255 | $ 126,413 | $ 126,055 |
Earnings per share denominator: | ||||
Weighted-average number of shares of common stock outstanding - basic and diluted (in shares) | 11,829,000 | 11,823,000 | 11,829,000 | 11,831,000 |
Earnings per share - basic and diluted (in dollars per share) | $ 5.29 | $ 5.43 | $ 10.69 | $ 10.65 |
Intangibles (Net of Amortization) and Goodwill (Narrative) (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount of intangibles and goodwill | $ 10,217,000 | $ 10,436,000 |
Accumulated goodwill impairment | $ 0 | $ 0 |
Formulas And Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 10 years | |
Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 10 years | |
Customer Bases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 20 years | |
Trademarks And Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 10 years |
Intangibles (Net of Amortization) and Goodwill (Schedule Of Amortization Expense And Estimated Annual Amortization Expense Related To Intangible Assets) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 218 | $ 301 | $ 436 | $ 1,354 |
2017 | 428 | 428 | ||
2018 | 834 | 834 | ||
2019 | 813 | 813 | ||
2020 | 504 | 504 | ||
2021 | 440 | 440 | ||
2022 | $ 440 | $ 440 |
Long-term Debt (Narrative) (Details) - USD ($) |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | |||
Issuance of 3.78% senior notes | $ 250,000,000 | $ 0 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Average interest rate during the period | 2.00% | 1.90% | |
4.10% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 4.10% | ||
Principal amount of debt | $ 350,000,000 | ||
3.78% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.78% | ||
Issuance of 3.78% senior notes | $ 250,000,000 | ||
Annual principal payments beginning January 4, 2025 | $ 50,000,000 |
Long-term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | ||
Long-term debt and capital lease obligation | $ 627,976 | $ 507,275 |
4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 4.10% | |
Debt instruments maturity date | 2022 | |
Long-term debt and capital lease obligation | $ 346,798 | 346,505 |
3.78% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 3.78% | |
Debt instruments maturity date | 2029 | |
Long-term debt and capital lease obligation | $ 250,000 | 0 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital lease obligation | 26,426 | 156,000 |
Capital Lease Obligation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt and capital lease obligation | $ 4,752 | $ 4,770 |
Long-term Debt (Schedule Of Unused Portion Of Revolving Credit Facility) (Details) - USD ($) |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 627,976,000 | $ 507,275,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity under the revolving credit facility | 650,000,000 | 650,000,000 |
Long-term debt | 26,426,000 | 156,000,000 |
Outstanding letters of credit | 3,535,000 | 3,483,000 |
Unused portion of revolving credit facility | $ 620,039,000 | $ 490,517,000 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 278,035 | $ 192,154 | $ 158,136 | $ 93,424 |
Carrying Amount in Consolidated Balance Sheets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 278,035 | 192,154 | ||
Fair Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | $ 278,035 | $ 192,154 |
Fair Value Measurements (Estimated Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt (excluding capital lease obligation) | $ 623,224 | $ 502,505 |
Long-term debt (excluding capital lease obligation), Fair Value | $ 640,815 | $ 507,925 |
4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 4.10% | |
3.78% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 3.78% |
Subsequent Events (Narrative) (Details) - AMSA [Member] - Subsequent Event [Member] $ in Millions |
Jul. 03, 2017
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Percentage of business acquired | 99.50% |
Cash payment for acquisition | $ 185 |
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